5 minute read
Thailand emerges as ASEAN's PCB manufacturing leader
Sylvia Issa
INTRODUCTION TO THAILAND’S PCB INDUSTRY
Since the 1960s, Thailand has been a significant player in the global electronics industry, initially focusing on manufacturing hard disk drives (HDDs) and later expanding into a broader range of electronic components and devices. In recent years, Thailand has earned recognition for its outstanding performance in the production of printed circuit boards (PCBs), vital components used in a myriad of electronic devices.
With a firm grasp on the top spot as the largest PCB manufacturing country in the ASEAN region, Thailand stands as the fifth-largest producer of these integral parts on the global stage. This growth reflects the country’s effort to provide an enabling environment that attracts investors and promotes innovative manufacturing.
GLOBAL DYNAMICS SHIFTING TOWARDS SOUTHEAST ASIA
As China experiences rising labour costs and ongoing trade tensions, there is a visible push toward diversification of supply chains. Southeast Asia, including Thailand, offers an attractive alternative thanks to its lower labour costs, skilled workforce, infrastructure, and strategic position close to major markets such as the United States and Europe. These factors are drawing PCB manufacturers to set up shop or expand in the region, marking a seismic shift in the industry's manufacturing landscape.
The country’s strategic location, combined with favourable government incentives from entities like the Board of Investment (BOI), which offers generous incentives for electronics companies such as tax holidays and streamlined regulations, and a skilled workforce, make Thailand an attractive destination for foreign direct investment (FDI). According to an article in The Nation, the BOI has set a robust target to draw in 3 trillion baht (USD 86.5 million) worth of investment-promotion applications by the year 2027. This objective is bolstered by a tactical five-year plan showing early signs of success, with investment applications soaring to 840 billion baht (USD 24 million) in 2023, and projections indicating a rise to 900 billion baht (USD 26 million) in 2024.
Further strengthening its position, the development of industrial estates and smart logistics networks has boosted Thailand's capacity to handle high-volume electronics manufacturing and exports. Thus, the electronics landscape in Thailand is predominantly influenced by investments and PCB manufacturers from East Asian regions, particularly China, Japan, and Taiwan.
Additionally, the involvement of European companies, notably Germany’s STARTEAM GLOBAL, introduces a new perspective to Thailand’s PCB industry. Unique in the market, STARTEAM is for now the only European PCB manufacturer in Thailand and its presence contributes to blending European engineering excellence with the dynamic local manufacturing sector.
THE “DETROIT OF ASIA”: A CLOSER LOOK AT TRENDS AND PROSPECTS
Advances in technology continue to shape demand for PCBs. Whether it’s consumer electronics, automobiles, or communication devices, there is a global push for more sophisticated PCBs. Thailand's manufacturers are meeting this need by continually innovating and upgrading materials, processes, and design to keep pace with market evolution.
Thailand, dubbed as the “Detroit of Asia”, is advancing in the automotive industry, particularly with its shift towards electric vehicle (EV) production, supported by government incentives and subsidies. This move has attracted significant investments, evidenced by a 46% rise, highlighting strong investor confidence in the country’s economic potential. The EV3.5 scheme introduced by the government includes subsidies for EV production, indirectly boosting the PCB sector by increasing the need for high-tech components in vehicle assembly. In parallel, the rise of EVs is driving innovation in the electronics sector, especially in high-power PCB technology to manage increased voltages in vehicles, a shift evident as major players like Toyota, BYD, and Mercedes-Benz are setting up or expanding EV production lines which inherently require advanced PCB technology for electric powertrains and other electronic systems. Moreover, there is a strong trend towards sustainable manufacturing practices, particularly with a focus on minimising electronic waste and maximising energy efficiency, reflecting the broader industry movement towards more eco-friendly production processes.
Innovations are improving vehicle performance, particularly EVs, attracting global automakers and boosting demand for advanced PCBs in Thailand's growing automotive landscape. This burgeoning interest and investment in high-tech PCBs set the stage for the Thailand Electronics Circuit Asia (THECA) 2024, organised by the Thailand Printed Circuit Association (THPCA). The event was an undeniable success and is poised to play a pivotal role in the industry’s future and is expected to generate a trade value of 20 billion baht (USD 577 million) and create new job opportunities within the electronics sector. Given the substantial turnout of exhibitors and attendees, enthusiasm for THECA 2024 underscores Thailand's emerging status as a competitive manufacturing hub for PCBs.
LOOKING AHEAD: THE FUTURE OF PCB IN THAILAND
Thailand is actively positioning itself to enhance its capability in producing and supplying PCBs with an emphasis on becoming more self-reliant and reducing its dependence on imports. As it navigates through stiff competition from neighbouring countries with lower labour costs, Thailand is challenged to continuously innovate, especially in the rapidly growing EV sector, whilst also addressing the environmental concerns associated with PCB manufacturing. Furthermore, Thailand's strategic geographical location offers a distinct advantage in exporting PCBs, particularly to the automotive industry. According to the Bangkok Post, this ambition is aligned with the government’s 30@30 policy target to make 30% of new vehicles electric by 2030 and its commitment to sustainability and achieving carbon neutrality by 2050, which in turn will likely spur innovation in eco-friendly PCB production techniques.
Striding into the PCB manufacturing industry, Thailand has positioned itself as a leader within ASEAN and a prominent competitor worldwide. By leveraging its strategic location, strong infrastructure, skilled workforce, and accommodating government policies, Thailand is surely shaping the future of PCB manufacturing on a global scale.
Contact details:
Sylvia Issa
Marketing Communication Specialist
STARTEAM GLOBAL
Tel: +852 3628 1421
